recession we're looking at two points many the same cycle to see over the course of business cycle how has things changed they've not changed much the continuation over the decades the horizon ac excess thousands the growth from the bottom of one recession to the bottom of another recession it grow over 4 percent which is rallied in the overall city and financial and professional services were flat and all the local certifying destroying destroy lost jobs at a rate of 1 and a half percent this shows the big industry in san francisco cleared to a typical u.s. gravel we have a

lot of strength about 4.7 percent what the typical place we've strengthened the cities and strengthened the financial and professional services we've got 60 percent of jobs in the local industries in the city that are a size typically in the united states the sector of our economy is the weakest performing we're losing jobs in a typical city of our size would have the relative performances that is a key finding i think in the study goes a long way for the demographics of san francisco the way it does that the type of jobs it supports in job i apologize for the jair in the corner what we wanted to look at was for each industries how do

the jobs line up in terms of the education that you need to work in the industry or the employees in that industry typically have and how much do necessary pay one the key finding the industries that are doing well in san francisco the creativity cluster and the other clusters either provides high paying scombrobz for people or provide low paying jobs generally important people that don't have formal education i don't remember the exact number somewhere in the area of 70 to 75 this is quite a low wage creative industries wells the financial and professional service industries tend to offer more medium and particularly high wage but most of the workers will have a four degree

and only half of the san franciscans fall into that there's a mismatch between the industries that are growing in the city and the types of people they tend to adhere and the demographics in san francisco it is really that mismatch that drove the kind of prospective and objective to the stirs economic stream in 2007 and what the city needs to do going forward that has implications that this is a chart of the income cohorts are the usual one we've talked about with affordable housing around 50 percent of below are very low and 50 percent and low and one hundred is moderate and one

hundred 20 is up and it shows clearly we've had growth at the top of the structure and one hundred 20 and above and growth zero to 50 powers and a little bit of growth in the low we've seen a decline in the population so the growth in the city's pops is at the top and bottom the industries to hire people at the top i don't think that is very sprooirz >> the ballot measure that created the plan requirement required you to do something called a barriers to john growth survey a survey of businesses to identify the factors in the city busy climate to discourage them

from hiring we supplemented this to look at how the cost of doing business in san francisco for different types of busy is different within the bay area this is one slide to highlight this and again, i apologize on the video the different colors don't show up but the survey and the kind of cost analyze we did pointed out to 3 factors that are particularly contributing to a high cost in the first and important is labor costs the biggest expense 3 businesses pay month biz spend their revenue on labor and in san francisco's the labor costs are higher than the bay area that show up in blew black and blue the second cost is their space and it tends to be higher

in san francisco for most businesses quite less of a factor and the third is taxes taxes are higher in san francisco but this is a distance third relatively if you buzzing businesses that have higher costs in san francisco because the baby boomer laboring costs are higher or the spaces are higher this is an example of a typical hard war store pays in labor costs and office and taxes in san francisco and some other plays around the burr for the east bay san francisco is hire you may say people don't decide to go to oakland to a hardware store you you know businesses have higher costs but have a local cap market that's true but probably less and less true

first of all, there's a lot of leakage out of san francisco like the area that costs are lower, and, secondly businesses are not only competing with the jurisdictions but online resources particularly formula retail when you look at the industries that don't say a natural comprehensive edges the fact it is more expensive in san francisco is probably connected to the fact they're not growing and thriving in san francisco this is addressing some of the barriers over the long term we won't have an economic in which two or three of the sector are doing well on that note i'll i'm going to my colleague. >> commissioners to close on

the formal report i'm eager to get to our questions as well public comment i want to talk about the next steps and the concludes of this updated are sort of directing us as ted mentioned there are remaining challenges to achieving the 3 goals i've late out in the inventing we've laid outside the 7 here first is the focus on the development of more housing particularly affordable housing this one goes to the heart of the last bar chart of the hardware businesses in san francisco the costs they face because of the high costs housing and how that translates into was this compared to other cities we can talk about that more this commission knows of the work in the area and enjoy

that we'll talk about that we continue to promote the job enhancement that is one of the slides how the wages are driven by education level and then overlayed by the industries that create those types of jobs a simple way to talk about that the companies with barriers to employment they're maybe the folks have a record or not graduating from high school to make sure that those folks increasing the levels of wages so they're not just stag nate and exacerbating the low chart of low and high and middle income earners and this is straightforward that oewd in

working with the department of the technology and the office of small business commission teaspoons with the small business portal and the starting businesses we need to address rising real estate costs and the lack of space in the city this is an issue the commission knows there will be a robust discussion and we need to be focused on the local serving industries and particularly not only pdr but your local small businesses in the commercial coordinator e corridor as ted was shoving we're under performing the commission has deny done a great job of supporting our local busy this is about our infrastructure capacity 3 goes without saying the importance of motorcycling people not only in the supply but in and out of the city and considerations for moving the

employees and consumers late at night as well and finally the four conclusions of economic strategy that continue to be true to continue to strengthen our infrastructure and the direction and the transportation and the pdr industries we need to continually up to date the tourism is a key desire of the city's economy and retain our larger sector companies because they're not just providing strong employment growth but stronger multiplier that plusses and minuses through the community and continue to be a great place to start a business whether a new hardware store or nonprofit san francisco's most compelling to brings things to market we need to be competitive for that with that we'll bring

this portion to a close happen to look forward to discussion and public comment thank you thank you very much communication there's one card tom are you still here okay any public comment on this item? okay public comment is closed. let me start off with a couple of thoughts it is interesting that what i think is most interesting information items there's usually no public comment but (laughter) this one is possibly out of the reports and packet we get the most important and the most comprehensive it looks at trams and housing thank you for putting this together the entire team to me with the 2007 and this year's report has a pretty good baseline and getting a better baseline what we want to

see in the next report a few years from now it was mentioned some miss matches and barriers here and i think from at least my prospective and the commissions prospective 23 we can identify those miss matches we'll make bettered informed decisions and being latter soft or strong commissioner richards relations e.r. mentioned in a comment about market rate housing and what's the balance are we offer ballot things about office allocations and the 3 legged stool and the affordable housing and job creation i'm interested to see and the gentleman mentioned the next steps but really where we take this data and digest it now we've got to here and make a plan of action going forward to try to bring

other groups that have stake and hue to get them on board at least 80 percent to say the r right direction so i'm curious to hear with the other commissioners say and commissioner antonini. >> very interesting report very well done i want to comment when we were talking about how to work with businesses and individuals it help them with their needs it's important it is on existing recipe and businesses we have to outreach throughout the drive ccii or the world to businesses that might not be here what can we had to get them here i remember i was talking to a hotel chain wanted to get them here in san francisco there are many businesses that people in san francisco will drive long

distances to get to they don't have to care if they drive to palo alto or other places they like the particular business and that's true of businesses located everything else we have to be supportive of what we could get in the future to improve our economy and stop people from spending money outside of san francisco and you know most businesses would love to be in san francisco with very an adversarial relationship we have to weigh that one thing disturbing about the survey 75 percent of those surveyed want side business climate was average or terrible in san francisco we have to find out

why and then went into the various factors that people said were barriers for them being here one would assume are often the reasons although sometimes several reasons they don't necessarily mentioned when you talk about the quality of life many people don't want to have businesses here they have to deal with undesirable factors homelessness is a problem but seems most noticeable in san francisco compared to other parts of bay area in my opinion and some of the other anti social activities on san francisco students you have to step ero e over or avoid to get to work we have to be frank what are you talking about but in terms of the tangible things the good news are controlable echo

tax and licensing the various things in san francisco we in a minute want to change those but within our control we've done a little bit already the cost of rental space is something we can control if we start to think logically about the ability to build new spaces in san francisco in the 80s there was a boom and unfortunately, we passed legislation that made it impossible to enough office space to match the demand to they respect to suburban parks this was cheaper to build and bart and other things being established they were able to attract businesses simon's sometimes reluctantly and the existing office space skyrocketed we were not creating

things we're in the same situation builders want to be building and employees often live here already we could do ourselves and others by providing office space for the commuters because many if i remembered would rather be in san francisco or at least high percentages of their employees would be relocated here he we have to look at the problem and pass whatever measures net necessary and not shoot ourselves in the foot when we're on the verbiage or vergo of success by making those restrictions and even the housing restricted 23 we work with other agencies in the bay area for transit solutions such as a second bart other things that will bring san francisco the natural center for businesses business

unfortunately, he even it outlizing areas near san francisco are expensive but notice ably less than san francisco not everyone who works here will be able to work here we want to build as much affordable housing here because people prefer to else here goss close to their jobs and middle-income or upper middle-income housing people leaf san francisco because of other factors it is a quality of public schools because of the lack of larger housing so those are things we have to work on to meet those problems what of the also very disappointing was the retail industry record a very low attraction level retail is

another leg of the business community we didn't emphasis but people historically come to shop they come for the uniqueness of the product they can go to other areas but see the same stores if you want to go to a really exclusive high-end or valencia or other stores that's a san francisco experience we have 80 be supportive of retail obviously that group feels the climate is not very good for them and the good news was i think remaining the employees is not a problem because people want to be in san francisco there's culture activities there's educational there's health and entertainment

activities and it makes a place for people to live and work of they don't work they can avail themselves of those things that's why we see a booster in attendance when the giant had a ball park it was easier than driving out to candle stick and maybe the same when the warriors the concert attendance will be attractive so the other thing i think you need to look at is ac businesses that used to be in san francisco bay and in the bay area but others what were the real factors that drove you out of san francisco that will be instructive that will keep frifrmz firms from leaving i've

dubbed i talked about the quality of life with transit there's not a restriction caltrain and all those transportations moves individually and no one saying what's the best way to bring rapid transit to the be richmond district should we tunnel through the roads nobody is thinking thinking outside the box but that that really has to happy happen so it's a good report i see that need to be worked on and if we address the different things i've talked about today and the other commissioners will bring up we'll reach laugh of our problems we have to stop the

eludes there's a lot of things in san francisco the people that live here now are us and anybody who want to live here is them there's an ann attaching between people that want to live in the city we should welcome people to san francisco and try to figure out the best ability to match up residents with the jobs or create jobs that will you know be good for the residents that you know want to live here and see if it works i think the forces are already here everything is in motion we have to harness those and treat them in the right way instead of antagonistic in prison to the newcomers have show you bad people because they're new that's not how things are thank

you. >> commissioner johnson. >> thanks yeah. a couple of things thank you a wonderful presentation just a couple of quick things i appreciate you preempted my applaud i do for the transit program and also for how the development of commercial large-scale faces in the southeast is going to change the valuation or where the waste levels are you appreciate you preempting me i'll keep it short one thing i've heard have those four or five items this is the infrastructure piece i want to hang on that for a second and plug yet another thing the development agreement i feel

there are many elements about keeping businesses especially businesses service entities like nonprofit and resident in san francisco that are connected to real estate and land use but not directly related to the structure of a building or what kind of a building which is where we ofrmentd that's our value the tool we have i think you can use the development agreements to encourage what you want to see the space for smaller companies spates for nonprofits space for neighborhood surveying services we talk about the academies one of the things i'll plug that hope sf is those soft academies and other sorts of city provided services are effective when their near the

people and hope sf is in toddler services are in the middle how to integrate that into other housing or larger community that are being built how the are not sf we don't have control over we can talk about that development agreements because we can't matt haney make it known you have to have those neighborhoods that's not the best approach but look at the projects here's the elements that make it a successful community and use the agreement is to get there than rather than trying to legislate everything i want to make a plug again you know going off the idea the the agreement is a way to get the type of groethsd in

the community i definitely saw in the report it was interesting not preempt commissioner richards comments people's 3 i talked about this we want to see more bill income jobs you can't have a successful communicated with such a you know double barrel sort of handle shaped economy you're not going to have success things will fall apart and one way to get them i saw in the report you need to start having companies st. paul in here, yes you start off with the high wage and the higher educational jobs with you as the companies grow they start to need more in case jobs that was interesting in the report and again use the environment agreements to help the companies

you have the natural wage groektd growth over a cycle rather than market rate the different types of zoning and you want to encourage that sort of natural cycle of the growth and the companies i appreciated the point and again my comments are short you preempted my comments about the economy so thank you very much. >> i want to thank everyone for the report i wanted to ask on this chart if we could see the raw numbers of the job increases in those 4 areas from 2004 to 2010 it doesn't have to be now. >> we certainly can do that commissioner and you think 24 has in the report the total number of jobs but specifically in 2004 through 2010 and looking and goals in 2007

especially around the inclusion and equity i think in many ways we've not xhufd that goal especially the chart that shows the high and low income i think one thing in conclusion we focus on booster the local industries it was in the conclusion but more effort on the sort of industries and not only pdr but construction i saw real estate i saw a number of different areas it is not only one slice but everything that is surveying and the chart that shows the wages co-relating to education that's where we have the opportunity to get better wages to people that don't have the education. >> also in our concludes you've

talked about the role of costs difficulties around the location of small businesses and profit in san francisco right away right now, i'm encouraged by itself work we're doing only legacy businesses some of the possibility of allowing the right for a lot of business owners to buy their retail spaces or that line of thinking has been strong i hope we can continue to look in that direction i'm interested in what commissioner johnson had to say whether or not the multiplier works i see the diversity in income maybe the longer than businesses stay here the longer than people in the businesses